Episode•December 13, 2022•6 min

Tiffany's Take: Is There Such Thing as Too Much Debt? | Ep. 179

Every Tuesday, Tiffany answers one of your submitted questions. To submit a question for an upcoming episode, visit here: https://www.moneytalkwitht.com/asktiffany. Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

Apple Podcasts Spotify YouTube Overcast Amazon Music

Key Takeaways

1
Debt tolerance is highly personal and subjective
Tiffany is debt-averse and aims to eliminate everything except possibly her house
Some people are comfortable carrying student loans indefinitely while prioritizing other debts
The key is checking in with how you feel about your current debt load
2
High credit utilization signals too much debt
Being over 100% utilization on credit cards means you're carrying too much debt
This impacts both financial comfort and credit health
3
Debt-free living (except possibly mortgage) brings significant emotional benefits
Tiffany describes being nearly debt-free as "such an awesome feeling"
Being debt-free reduces monthly payment stress and increases financial freedom
4
Create a customized debt payoff strategy based on your comfort level
If debt-averse: pay everything off as quickly as possible
If comfortable with student loans: pay minimums and focus on other debts first
Federal student loan payment pauses may affect current strategies

Intro

In this Tiffany's Take episode, Tiffany answers a listener question about whether there's such a thing as too much debt, providing a personal and nuanced perspective on debt tolerance.
Tiffany Grant is a financial coach and host of the Money Talk with Tiff podcast, known for her debt-averse approach to personal finance.

Facebook Twitter Instagram LinkedIn Submit a Question

– Introduction to Tiffany's Take

Tiffany introduces the episode format where she answers listener-submitted questions every Tuesday.

– The Core Question: Is There Such Thing as Too Much Debt?

Tiffany explains that debt tolerance is very personal and depends on individual comfort levels.

It depends on how comfortable you are with debt.
– Tiffany

– Tiffany's Personal Debt Philosophy

Tiffany shares her debt-averse stance, wanting to be completely debt-free except possibly her house.

I do not like that at all. I want to be debt free... I don't like living under it. I don't like paying every month.
– Tiffany

– Different Approaches to Debt

Tiffany acknowledges that others may be comfortable with certain types of debt like student loans while prioritizing credit card payoff.

Some people, they're like, well, you know, I want to get rid of these high interest credit cards but I'm okay with having student loans forever.
– Tiffany

– The Emotional Benefits of Being Debt-Free

Tiffany describes the positive feeling of being nearly debt-free and shares her goal of becoming debt-free by age 35.

It is such an awesome feeling. It is such an awesome feeling.
– Tiffany

– How to Determine If You Have Too Much Debt

Tiffany provides practical questions to assess debt comfort and mentions credit utilization as an objective measure.

Check in with how you feel. Check in. Is this comfortable for me? Is this something that I want to live with?
– Tiffany

If you're over 100% using your credit cards, then of course that's too much debt.
– Tiffany

Resources

Topics

Debt ManagementPersonal FinanceFinancial FreedomDebt Payoff StrategiesCredit UtilizationStudent LoansFinancial MindsetDebt AversionFinancial GoalsMoney Psychology